Harmonic moves gave advance signals for this surge:
Now before moving to analysis. I would like to show you to that were formed during the strong of March 2020. And while moving down the Cardano formed a on two day chart and in the meanwhile the price action also formed a very big pattern on the monthly chart as well. Therefore as per Fibonacci sequence I predicted that the price action will take from the potential reversal zone of and along with that it will also start a rally from the potential reversal zone of pattern on monthly chart. And the this move would be like a chain reaction. And we have witnessed that finally the priceline of ADA started a move after the mid of March. And sofa it has produced more than 300% rally.
In order to observe the power of or it is very important to watch moving averages. Therefore I always watch the position of the moving averages. Now on if we watch the position of the simple moving averages with time period of 25 50 100 and 200 then it is very strong . There is only one move is due and that is the 100 should form a bull cross with 200 . And then a complete opened mouth will be formed that can lead the price action to turn more . But there is also a critical point and that is the price action has turned so much and it went very far above the moving averages. And there is a big distance between the moving averages and the price action. Therefore if the priceline will start a correction rally then it can move down up to the first available nearest moving average and at this time it is 25 . Therefore that will be a drastic drop however if the moving averages will be moved up and remove this distance then the price action will have strong support of the SMAs just below the tail of the .
Up channel has been broken exceptionally and EMAs are strong bullish:
On the same the Cardano has formed an like every top cryptocurrency. But exceptionally the ADA turned very strong and it has broken out the resistance of the channel. On the other side if we watch the Bitcoin and all other cryptocurrencies then those are still moving within the channel. For example at this time the Bitcoin is near support of that channel. And if we watch the exponential moving averages 10 and 21 then again Cardano went very far from the support of exponential moving averages and on the other side the Bitcoin is using the exponential moving averages 10 and 21 as support.
Support and resistance levels:
During the previous strong drop the priceline of ADA has re-tested the support of $0.027. Then it moved up and crossed the $0.45 resistance. And after crossing up this resistance the price action re-tested it as a support and then Cardano turned very strong and crossed up $0.065resistance level. This time the priceline was very strong as it did not re-tested the previous resistance of $0.065 as a support. However there is still possibility that price action will start correction rally and re-test the previous resistance as support before next rally. Now the next for Cardano is $0.10. Amd this level in very strong key level resistance as it is not broken out since April 2019 even after several attempts by the ADA. Therefore the next move is very important for Cardano. If this $0.10 will be broken out then the price action can start stronger than the previous rally to achieve the higher than previous highest price ever in the history of ADA.
In the month of Jun 2020 The ADA can behave different as compare to other cryptocurrencies including Bitcoin . And it can show more powerful moves in coming days. However we should be careful about the stop loss because the price action went very far and away from the support of the moving averages. Therefore if price action will move down to retest the support of any moving average then the drop can be severe.